Ten foreign banks seek to start 100% operations in Vietnam

By

Published: Jan 16, 2007 5:21 a.m. ET

Share

HANOI (MarketWatch) -- Ten foreign banking institutions are seeking to set up wholly-owned units in Vietnam, a central bank official said Tuesday.

GE Money, a financial services unit of General Electric Co. (GE), and the Commonwealth Bank of Australia (CBA.AU) are among the applicants seeking to open their own banks in the country, the State Bank of Vietnam official, who didn't want to be named, said.

"So far we have received ten applications for setting up new banks or branches from foreign institutions, and we will consider them," the official said.

"In total, there are three applications for setting up new banks and seven applications for forming branches," he said.

The foreign banks are keen to take advantage of new rules, after Vietnam officially joined the World Trade Organization earlier this month, that open up a fast-expanding banking market to them.

Under commitments to the WTO, Vietnam will allow the establishment of banks that are 100%-owned by foreigners from April, said the official with the State Bank of Vietnam.

Vietnam law stipulates that foreign banks must have assets of at least $10 billion if they want to establish units in the country.

"We want to make sure that they are financially capable to enter this market, because competition is very strong here," the official said.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.